Asian markets went down today despite last week’s better than expected Nonfarm Payrolls data. There are two main sources of blame for this: Firstly, Japanese GDP data and current account data were worse than expected, with GDP growing only 0.2% for the quarter despite expectations of 0.3%. Secondly, Chinese exports unexpectedly declined by 18.1% – a staggering figure for country that is often seen as the world’s industrial base. Not surprisingly, the Nikkei closed down 1.01%, the Hang Seng closed down 1.75%, and the ASX 200 closed down 0.93%.
European markets were also down – but for a slightly different reason. Though Chinese data hurt European equities as well, the main cause of anxiety in Europe was the continuing crisis in the Crimea, caused investors to leave markets and seek safe havens for their wealth. Other than these events, there was no data of relevance published, so the downward pressure faced by European indices went unmitigated. The Stoxx 50 closed down 0.08%, the FTSE closed down 0.35%, and the DAX closed down 0.91%.
American indices are down due in large part to a decline in the share prices of commodity producers. Due to weaker exports from China, many are worried that the demand for raw materials will decline. Furthermore, as Americans import lots of Chinese goods, a drop in exports from the Middle Kingdom could signify a reduction in consumer demand in the US – threatening the fragile recovery underway. Thus, the Dow is down 0.0.37%, the S&P is down 0.14%, and the Nasdaq is down 0.13%.
March 10, 2014 – Indices News
Asian markets went down today despite last week’s better than expected Nonfarm Payrolls data. There are two main sources of blame for this: Firstly, Japanese GDP data and current account data were worse than expected, with GDP growing only 0.2% for the quarter despite expectations of 0.3%. Secondly, Chinese exports unexpectedly declined by 18.1% – a staggering figure for country that is often seen as the world’s industrial base. Not surprisingly, the Nikkei closed down 1.01%, the Hang Seng closed down 1.75%, and the ASX 200 closed down 0.93%.
European markets were also down – but for a slightly different reason. Though Chinese data hurt European equities as well, the main cause of anxiety in Europe was the continuing crisis in the Crimea, caused investors to leave markets and seek safe havens for their wealth. Other than these events, there was no data of relevance published, so the downward pressure faced by European indices went unmitigated. The Stoxx 50 closed down 0.08%, the FTSE closed down 0.35%, and the DAX closed down 0.91%.
American indices are down due in large part to a decline in the share prices of commodity producers. Due to weaker exports from China, many are worried that the demand for raw materials will decline. Furthermore, as Americans import lots of Chinese goods, a drop in exports from the Middle Kingdom could signify a reduction in consumer demand in the US – threatening the fragile recovery underway. Thus, the Dow is down 0.0.37%, the S&P is down 0.14%, and the Nasdaq is down 0.13%.
Related Posts: